Meaning of Inter-State and Intra-State Supply
(SEC-7 and 8 OF THE IGST ACT)
In terms of Sec- 7 (1) & (3) of the IGST Act, the supply of goods or services in the course of inter-state trade or commerce means any supply where the location of the supplier and the place of supply are in:
- Two different states
- Two different union territories
- A State and a union territory
On the other hand, in terms of Sec – 8 (1) & (2) of the IGST Act, the intra-State supply of goods or services means the supply of goods or services where the location of the supplier and place of supply are in the same State or same Union territory. However, the intra-State supply of goods shall not include:
- Supply of goods or services to or by SEZ developer or to by a SEZ unit;
- Supply of goods brought into India in the course of import till the cross the customs frontiers of India.
- Supply of goods made to a tourist leaving India on any supply of goods taken out of India by him.